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Market Commentary 31/08/16

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EUR/USD – Daily Demand Zone Broken

The daily demand zone which the market fell into yesterday has been broken today but we could still see a move up occur as the price action forming suggests the bank traders are taking profits off sell trades.

You can see how the market has kind of being in a consolidation today with bullish moves followed by bearish moves that are similar in size. If we do see the market start to rise up again the supply zone seen in the image is the point where you want to be watching for entries short as it’s the last point where the banks got a large portion of their sell trades placed.

USD/JPY – Sell Zone Broken By Move Higher

The sell zone which the market was making its way through yesterday has now been broken and we have a new demand zone we can use to look for entries long

Looking at the image you can see a retracement began just before midnight last night and continued until 3 am at which point a large bullish engulfing candle entered the market and caused the price to begin moving higher. This engulf also created a new demand zone which we can use to look for potential entries long if the price starts to decline again. I think this is likely because we can already see there are some signs of profit taking enter the market in the form of bearish candles so a fall back down to this zone may be possible by the end of the week.

AUD/USD – Profit Taking Entering The Market

AUD/USD retraced slightly last night and is now having trouble breaking lower with multiple bullish and bearish candles currently forming near today’s lows.

There was a large drop a couple of hours ago but the market was able to recover and trade back up to the pre-drop highs. The sell zone identified in yesterday’s post is still the main place we want to be watching for entries short, if the market keeps falling to break to new lows it could be that we see a move back up into this sell zone which may give us an opportunity to get a short trade placed.

Finding Supply & Demand Zones That Work!

How Old Supply And Demand Zones Do Not Cause The Market To Reverse And The Reason Why ﻿Traders ﻿Mistakenly ﻿Believe They Do

Why The Time It Takes For The Market To Return To A Supply Or Demand Zone Will Determine Weather The Zone Has A High Chance Of Causing A Reversal To Take Place

The Differences Between Zones Created By Bank Traders Taking Profits And Zones Created by The Bank Traders Placing Trades